Wednesday, February 4, 2009

How about 25% LTV instead of 25% Deposit?

Mortgage hurdles become tougher

The conditions attached to mortgages have become more severe in the past month, as banks have continued to rein in their lending to new borrowers. Well, basically every time the banks lower their rates to ease government pressure, they also hike up the LTV, which reduce the quantity, which end up back to square one.

Posted by peter_2008 @ 04:27 PM (1108 views)
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4 thoughts on “How about 25% LTV instead of 25% Deposit?

  • soon no-one will be able to borrow……

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  • Oh dear…..And here’s us thinking that after being lent £185,000,000,000 of our money the problem of liquidity had been solved.

    I guess the traditional “spring bounce” in the property market may be postponed for a while………until 2013 perhaps?

    “There are some tentative signs that mortgage lending and house sales, though not prices, may have touched the bottom.”

    Really ! A bit like the met office announcing in the autumn that we were in for a mild, wet winter.

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  • This should help to bring prices down as 25% of half or more of the original value moves within FTBs’ territory and is not so bad after all.

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  • @ 1.mark

    soon no-one will be able to borrow……

    Whats not to say that privately owned housing will slowly become a thing of the past…?

    If the cost of housing and financing housing is gradually made so high that most people can’t afford it, then it will become more difficult for young people to buy a house and they’ll be forced into renting apartments, after all, how many have been built compared to houses ?

    Not exactly going to raise a family in an apartment are you ? Hmmm… bit of population control thrown in for good measure.

    Something to think about…. and its only an idea before anyone starts :o)

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